Tuesday, November 4, 2014

In Sotogrande Spain Tailor Made estate agents have more UK interest for Spanish luxury homes market

A upturn in the Spanish luxury homes property market and a strengthening of the Pound results in more Brits arriving and bargains being snapped up in Sotogrande Spain Signs of improvement in the UK property market and stronger Pound is having a knock on effect here in Sotogrande Spain. Am pleased to say the phones are ringing again as people revisit the prospect of buying a home in Spain.Having said that the hardest hurdle to bridge is the price difference between what owners will sell for and what buyers are willing to pay and with low interest rates continuing many owners in prime locations are holding their prices. Sales that have been happening have in the main been for bargain property. The press would have us believe that in Spain the market is littered with give away bargains and yes there are plenty of cheap homes around most areas. Having said that the press often fail to mention that a lot of these vacant properties in Spain were not desirable in the good times let alone a recession. Too many greedy developers over building and reducing building specifications creating concrete jungles many of which are half built or remain unsold. Here in Sotogrande much of the property that was for sale has been removed from the market because owners have rented them long term or simply decided to wait It seems to me that people are now street wise about buying in Spain and these days are asking all the right questions. As a country the South of Spain has tackled the huge corruption issues and many a developer, Lawyer, Planning officers and town Mayors languish in Spanish Jails guilty as charged.
The risk factor in the property market is not what it was and slowly but surely progress is being made. I feel people recognize the improvements and whilst many changes to the law are long winded, bureaucratic and frustrating the end result will be to stamp out many of the risks and issues Spain's property market.
As an agency selling property in Sotogrande Spain, the risk is further minimized simply because this area one of Europe's largest upmarket private residential estates is well established. The development was originally set out in the 1960s and has grown to become one of the main holiday home locations for many wealthy Spanish.
So there is no surprise that this estate with so much natural beauty and sporting facilities has attracted many city lawyers, top sports people and Spanish Government ministers to choose Sotogrande for their second homes.
My gut feeling is that Spain is about 18 to 24 months behind the UK market and for property in wealth locations particularly in respect of upmarket prime location homes.
Sotogrande does have its share of bargains although no where near the levels the generalizing press would have you believe. In the last 12 months property has been selling for me it is a reflection of some owners wanting to offload after reaching an impatience threshold.
On our books a 5 bedroom villa in Sotogrande that would once have been on the market for in excess of 1 million euros yet recently these owner have conceded to re-market the property inviting offers on 595,000.00 euros. In any given month you can find 1 or 2 such bargains but the truth is that with low interest rates many owners in wealth locations prefer to be patient. Trouble is that for some unknown reason Agents are still valuing property far too high and when presenting their values throwing in the old agency gem "We will put it on the market at price X but people will make low offers anyway so no point reducing" For me this is an outdated approach to agency, and any sales person worth their salt will know that if you establish a value close to your selling level then you are more likely to be looked at by a lot more prospective customers than you would with an extortionate unachievable price. This 3 bedroom waterside apartment once 760.000,00 euros has just exchanged contracts for 310.000,00 euros a real steel for a property on the waters edge and 100 meters from the beach.
Its not uncommon for a property in Sotogrande to go on the market at 1.5 million the owner knowing the reality that its not worth more than 900,000.00. Real buyers know their budget and may NOT look at property 100,000.00 over their budget so the closer a property is priced to the sellers bottom line the more chance there is of selling.
It is very frustrating for me as an agent when giving a true selling value that's a much lower valuation than provided by my competitors and then 2 years down the Road the property sells very close to my original indication.
Francis Payne Tailor Made estate agents Sotogrande tel.0034 956790320
Offices in Sotogrande Port

1 comment:

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